Decarbonization Options in the Steel Sector

Decarbonization Options in the Steel Sector

To combat climate change, accelerated by the increasing accumulation of anthropogenic greenhouse gases in the atmosphere, decarbonizing only the energy sector is not sufficient. Scientific studies have demonstrated that decarbonization can only be achieved by reducing greenhouse gas emissions originating from all sectors across the global economy (industry, transportation, buildings, agriculture, etc.). In this regard, many countries have announced decarbonization roadmaps for industrial sectors, along with relevant targets for reduction, technology, and financing utilization. Turkey’s updated Nationally Determined Contribution (NDC), announced at the 27th Conference of the Parties (COP27) to the United Nations Framework Convention on Climate Change (UNFCCC) in November 2022, includes some general actions for the industrial sector. Furthermore, the 2053 Long-Term Climate Change Strategy (LTS) document, submitted to the UNFCCC in November 2024, defines targets for 2040 and 2053 for the steel, cement, and aluminum sectors under the industrial sector heading. However, a legal regulation containing binding reduction targets for emission-intensive industrial sectors has not yet been implemented.

Having recently announced its 2053 Net Zero target, Turkey is expected to define reduction targets for its emission-intensive industrial sectors. Studies necessary for planning financial programs and energy infrastructure investments that will facilitate reaching these targets, as well as creating the necessary environment for regulatory conditions, must be initiated immediately. While planning this process, ensuring similar conditions for the implementation and effective enforcement of regulations regarding efficiency and resource utilization (energy, raw materials, water, etc.), in addition to the management of greenhouse gases, will be a complementary element.

In this context, various projects have been implemented in recent years by relevant public institutions and non-governmental organizations to better define the requirements for the decarbonization of the iron and steel sector, which is considered a strategic sector for the Turkish economy and industry. The "Steel Sector Decarbonization Options" report, prepared within the scope of the "Turkey Steel Sector Decarbonization Project"—one of these studies—presents technical information regarding technologies that will enable the reduction of carbon emissions originating from crude steel production activities. Within the scope of the project, a report titled "Decarbonization of the Turkish Steel Sector: Current Status" was also published in 2023. The aim of the study is to provide examples of technologies regarding the decarbonization transformation in the global steel industry and to establish background information for solution discussions specific to Turkey. As it is not possible to address all aspects of the subject within a single study, the aim was to create a guidance text on technical issues. It is believed that this and similar studies will guide decision-makers and the sector in planning the technological and economic transformation specific to the steel sector.